Western Australia-focused Mercator Gold has raised £4 million at 40p a share to accelerate access to the Bluebird open pit at Meekatharra.

Cenkos Securities and Ocean Equities handled the placing for the AIM-quoted company, run by entrepreneurial Aussie mining veteran Patrick Harford. London-based Mercator is mining the nearby Surprise deposit holding a 63,000 oz gold reserve at a low grade of 2.4 grammes of gold per tonne of ore, but says that Bluebird, with a reserve of 133,000 oz at 2.4 grammes a tonne, is a ’key component of our development strategy’. 

Shares in Mercator, which hit 106p three years ago, now trade at 38.5p, valuing the company at £24 million.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.

Mercator Gold	AIM	£2.36m	3.25p	0.00p
Click here for interactive charting
Other company articles:
Mercator arm goes into administration			13/10/2008
Silver lining for gold group			04/08/2008
Mercator in £4m placing			10/07/2008
Mercator Gold			11/03/2008
Mercator sees output boost			06/03/2008